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(Querist)
26 March 2017 Realisation of cash from debtors will not affect working capital.

Is it true or false.

Plz explain how
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CA Gopal Somani

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CA Gopal Somani (Expert)
26 March 2017 Yes, It will not impact. Because there is no change in Current assets.

Debtor decreases and with the same amount cash will increase. So no change in Current Assets and in turn no change in Working capital.
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